Stanley Druckenmiller, Duquesne Family Office, on CNBC’s Delivering Alpha, September 28, 2022.
Scott Mill | CNBC
Billionaire investor Stanley Druckenmiller revealed Tuesday that he cut his large stake in chipmaker Nvidia earlier this year, saying the rapid boom in artificial intelligence may be overblown in the short term.
“We cut these and many other positions at the end of March. I just need a break. Druckenmiller said on CNBC’s “Squawk Box.”
Druckenmiller said he reduced the bet after “the stock went from $150 to $900.” “I am not Warren Buffett; I don’t own things for 10 or 20 years. “I wish I were Warren Buffett,” he added.
Nvidia has been the main beneficiary of the tech industry’s recent obsession with large models of artificial intelligence developed on the company’s expensive graphics processors for servers. The stock was one of the top performers last year, gaining a whopping 238%. In 2024, shares will rise another 66%.
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The well-known investor, who now runs the Duquesne Family Office, said he was introduced to Nvidia in the fall of 2022 by his young partner, who believed that the enthusiasm for blockchain would be far exceeded by AI.
“I didn’t even know how to spell it,” Druckenmiller said. “I bought it. Then, a month later, ChatGPT came along. Even an old man like me could understand what that meant, so I elevated the position significantly.”
While Druckenmiller has reduced his Nvidia position this year, he said he remains optimistic about AI’s performance in the long term.
“AI may be a little overvalued now, but it is undervalued in the long term,” he said. “AI could rhyme with the Internet. While we do all this capital expenditure, we have to make the payoff as it arrives day by day. The big payout could come in four to five years.”
The widely respected investor also owned Microsoft And alphabet how AI played last year.
Druckenmiller once managed George Soros’s Quantum Fund and rose to fame after making a $10 billion bet against the British pound in 1992. He later led the $12 billion bet as president of Duquesne Capital Management before closing his company in 2010.
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2024-05-07 11:39:19
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